USAID/IBTCI- PSARP
Accounting
and
Auditing
in BiH
Senad Pekmez – Senior Accounting Consultant
USAID/IBTCI – Private Sector Accounting Reform Project
Bosnia and Herzegovina
USAID/IBTCI- PSARP
STATE STRUCTURE
BOSNIA AND HERZEGOVINA
-
UNDER DAYTON AGREEMENT COMPOSED
OF TWO ENTITIES:
1. FEDERATION OF BIH and
2. REPUBLIC OF SRPSKA
Accounting and Auditing in BiH
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USAID/IBTCI- PSARP
FEDERATION OF BIH
Responsible Institutions:
1. Institute for Accounting and Auditing of FBiH
(Government Institution)
2. Association of Accountants and Auditors of
FBiH (Private Sector)
3. Securities Commission of FBiH
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USAID/IBTCI- PSARP
Legal Accounting Framework in FBiH
1. Law on Accounting (from 1995 amended in 1998)
- 32 Accounting Standards in a force from 1999 (IAS)
- New Chart of Accounts
- New Format of Accounts (Set of Financial Statements)
2. Law on Auditing (from 1995 amended 1998)
- Auditing Standards
- Translation of:
IFAC International Standards on Auditing and Related
Services (1998 edition)
Accounting and Auditing in BiH
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USAID/IBTCI- PSARP
Legal Accounting Framework in FBiH
3. Law on Enterprises:
- Every shareholding company should have audited
financial statements, subject of approval of
annual shareholdes assembly
4. Requirements issued by the SEC of FBiH
- By Law on contents, way and standards of disclosure
of financial reports and other information concerning the
activities of shareholders company (OECD rules)
Accounting and Auditing in BiH
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USAID/IBTCI- PSARP
REPUBLIC OF SRPSKA
Responsible Institutions:
1. Association of Accountants and Auditors of
RS (Private Sector)
2. Securities Commission of RS
Accounting and Auditing in BiH
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USAID/IBTCI- PSARP
Legal Accounting Framework in RS
1. Law on Accounting
- 33 Accounting Standards published in 2000 (IAS)
- New Chart of Accounts
- New Format of Accounts (Set of Financial Statements)
2. Auditing Standards
- Translation of:
IFAC International Standards on Auditing and Related
Services (1998 edition)
Accounting and Auditing in BiH
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USAID/IBTCI- PSARP
Legal Accounting Framework in RS
3. Law on Enterprises:
- Medium and large shareholding companies should
have audited financial statements, subject of
approval of annual shareholdes assembly
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USAID/IBTCI- PSARP
Tasks and Goals
of Profession and Project in Accounting Reform
1. Building the Audit Profession
- To have audit firms in each entity capable of auditing in
accordance with ISA and reporting on financial statements
in accordance with IAS
- Current activities – organizing Audit Case Study training
for 300 auditors. Each participant will be expected to agree to
a post-training on-site visit by an experienced “international”
auditor to review workpapers, discuss audit issues and assist in
the application of sound audit practice.
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USAID/IBTCI- PSARP
Tasks and Goals
2. Modernizing University Curricula Reform
- To have BiH universities adopt a modern accounting and
auditing curriculum fully in accordance with UNCTAD and
IFAC guidelines.
- Seven BiH Universities signed MOA for implementing new
curricula.
-translating, publishing and delivering new accounting,
auditing, cost accounting and financial management
textbooks to students and professors.
-Organizing Summer 2003 training for University professors
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USAID/IBTCI- PSARP
Tasks and Goals
3. Enterprise Assistance in Applying IAS
- private enterprises to improve their competitiveness,
profitability, and access to foreign and domestic capital
through modernizing their financial reporting and
management accounting
- present courses on financial reporting (IAS) and
managerial accounting to enterprise accountants,
- implement program of on site assistance to enterprises
- train and subcontract local accounting and audit firms in
the provision of assistance to individual enterprises
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USAID/IBTCI- PSARP
Tasks and Goals
4. Support to Professional Associations
- A professional associations of accountants and auditors,
with nationwide representations, made suitable, and becomes
a member of IFAC
- The AAA of FBiH and the AAA of RS are in negotiations
regarding the Charter for State Level Association of
Accountants and Auditors.
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USAID/IBTCI- PSARP
Tasks and Goals
5. Legal & Regulatory Reform
- to have a nationwide law on accounting and auditing that
fully embraces International Accounting Standards and
International Standards on Auditing
6. Other Activities
- work closely with SEC on preparing and issuing the rules
which regulate accounting and auditing for the players in capital
market (brokers, dealers, PIF’s, MC, listed shareholding companies
etc.)
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USAID/IBTCI- PSARP
Tasks and Goals
Build a stronger relation between responsible institution:
MF, IAA, AAA, and SEC
in a both entities and nationwide
- To have better control and monitoring of applying
IAS and ISA in financial reporting and auditing.
- To have accurate, fair and true financial reporting and
disclosure of information for users of financial statements
in capital market
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